South Korean steel giant Posco has narrowed down on Sanand (Gujarat) for setting up its steel coil unit at an investment of $20 million.
"Posco will initiate a steel processing unit, for that they had made a proposal to GIDC. They are most likely to set up the unit at Sanand town. They (Posco) will soon make a formal application, which will probably be finalised by next week," highly-placed sources in the Gujarat government said.
Posco's Sanand unit will be their second still unit in India after Maharashtra's Pune, added the source.
As per sources in state government, Posco's steel coil unit will come up in 30,000 square metre area and will have the capacity of around 10,000 matric tonne annually.
The Posco plant is likely to produce steel coils for the automobiles, considering the grand presence of the sector in Gujarat, said the sources.
Republic of Korea's envoy Joongyu Lee had earlier said that Posco will establish a steel coil mill in Gujarat with investment of around $20 million in Gujarat.
Sanand had earlier become the favourite destination for the auto-manufacturers like India's Tata Nano and other multinationals including Ford and Peugeot.
Tata became the first automobile giant which had set up their Nano car plant in Sanand town, after they faced revolt in West Bengal's Singur and had to move to Gujarat accepting the then Chief Minister Narendra Modi's invitation.
Ford has also established their production unit in the same area. Apart from the auto giants, Japanese Electrical company Hitachi has also set up its manufacturing facility of power equipment at Sanand.
